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Prudential Capital closes third mezzanine fund at USD965m

Prudential Capital Partners has completed fundraising for Prudential Capital Partners III with capital commitments totalling USD965m, exceeding its initial fundraising target of USD900m.

Prudential Capital Partners is the middle-market mezzanine fund business sponsored by Prudential Capital Group, a private fixed income investment business of Prudential Financial.

Investors include state and corporate pension funds, fund of funds managers, insurance companies and family offices.

More than 80 per cent of the fund’s investor group participated in Prudential Capital Partners II, which totalled USD775m when it closed in 2005. Prudential Capital Partners’ first fund closed in 2001, totalling USD619m.

“Although this has been the toughest economic environment for fundraising that we have ever experienced, we believe what set us apart was our focus on a consistent middle-market investment strategy in sponsored and sponsorless financings,” says Jeffrey Dickson (pictured), managing principal, Prudential Capital Partners.

As of 31 December 2009, Prudential Capital Partners has funded 107 mezzanine and equity investments and has realised 56 of those investments.

Prudential Capital Partners and Prudential Capital Group are actively seeking North American financing opportunities for Fund III, which is expected to make investments over the next three years.

Fund III will follow an investment strategy consistent with that of the first two funds: making investments ranging from USD10m to USD100m to fund acquisitions, management led and sponsored leveraged buyouts, recapitalisations, and growth capital for middle-market companies in traditional industries.

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